S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8268
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 5, 2017
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
   Committee on Consumer Affairs and Protection
 
 AN ACT to amend the general business law, in relation to safety  recalls
   on used motor vehicles
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The general business law is amended by adding a new section
 198-d to read as follows:
   § 198-D. USED MOTOR VEHICLES; RECALLS. (A) FOR  THE  PURPOSE  OF  THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (1) "DEALER" SHALL HAVE THE SAME MEANING AS PARAGRAPH F OF SUBDIVISION
 ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW.
   (2) "USED MOTOR VEHICLE" SHALL HAVE THE SAME MEANING AS PARAGRAPH I OF
 SUBDIVISION ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAF-
 FIC LAW.
   (3)  "STOP  DRIVE ORDER" SHALL MEAN A NOTIFICATION ISSUED UNDER 49 USC
 SECTION 30118 WHICH INCLUDES PRECAUTIONARY  ADVICE  TO  STOP  DRIVING  A
 MOTOR  VEHICLE  (INCLUDING  THE  VEHICLE  IDENTIFICATION NUMBER FOR SUCH
 VEHICLE).
   (B) IF, PRIOR TO EXECUTING A CONTRACT FOR SALE  OR  LEASE  OF  A  USED
 MOTOR  VEHICLE  AT  RETAIL,  A DEALER DETERMINES PURSUANT TO THE INQUIRY
 REQUIRED BY SUBDIVISION (D) OF THIS SECTION THAT THE USED MOTOR  VEHICLE
 SUBJECT  TO  THE CONTRACT IS UNDER A STOP DRIVE ORDER, SUCH DEALER SHALL
 NOT SELL OR LEASE ANY SUCH VEHICLE UNTIL THE DEFECT OR NONCOMPLIANCE  IS
 REMEDIED.
   (C)  A  DEALER SHALL DISCLOSE IN ANY ADVERTISEMENT THAT ANY USED MOTOR
 VEHICLE BEING ADVERTISED MAY BE SUBJECT TO A RECALL, AND THAT A CONSUMER
 MAY OBTAIN ALL RECALL INFORMATION  FROM  THE  NATIONAL  HIGHWAY  TRAFFIC
 SAFETY ADMINISTRATION ON ITS SAFER CAR WEBSITE.
   (D)  A  DEALER  SHALL  PERFORM, PRIOR TO, BUT NO EARLIER THAN TWO DAYS
 BEFORE, THE EXECUTION OF THE SALE OR LEASE OF ANY USED VEHICLE, A SEARCH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11912-02-7

 A. 8268                             2
 
 USING THE VEHICLE IDENTIFICATION NUMBER OF THE VEHICLE INVOLVED  IN  THE
 TRANSACTION  ON  THE  NATIONAL  HIGHWAY  TRAFFIC SAFETY ADMINISTRATION'S
 SAFER CAR WEBSITE, AND SHALL PRODUCE AND PROVIDE THE  REPORT  FROM  SUCH
 WEBSITE  TO  THE PURCHASER OF ANY MOTOR VEHICLE SAFETY RECALL OR RECALLS
 THAT THE MOTOR VEHICLE IS SUBJECT TO, THAT SUCH RECALLS MAY BE  REPAIRED
 BY  A  MOTOR VEHICLE DEALER APPROVED BY THE MANUFACTURER OF THE VEHICLE,
 AND THAT FURTHER INFORMATION ON THE RECALLS MAY  BE  OBTAINED  FROM  THE
 NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ON ITS SAFER CAR WEBSITE.
 PROVIDING  A  PRINTOUT  OF THE RESULT OF THE SEARCH PROVIDED FOR IN THIS
 SUBDIVISION SHALL BE DEEMED COMPLIANCE WITH THIS REQUIREMENT,  AND  SUCH
 NOTICE  SHALL BE SIGNED BY THE PURCHASER.  ADDITIONALLY, SUCH DEALER WHO
 COMPLIES WITH THIS SUBDIVISION SHALL BE DEEMED TO HAVE COMPLIED WITH ANY
 STATE OR LOCAL LAW, RULE OR  REGULATION  RELATING  TO  DECEPTIVE  TRADE,
 BUSINESS  OR  COMMERCIAL  ACTS OR PRACTICES CONCERNING THE SALE OR LEASE
 OF, OR OFFER TO SELL OR LEASE, ANY USED MOTOR VEHICLE THAT AS  A  RESULT
 OF  A  FEDERAL  SAFETY  DEFECTIVE  OR  NONCOMPLIANT  CONDITION  HAS BEEN
 RECALLED BY THE ORIGINAL EQUIPMENT MANUFACTURER OF SUCH USED MOTOR VEHI-
 CLE OR THE UNITED STATES DEPARTMENT OF TRANSPORTATION, PROVIDED,  HOWEV-
 ER, THE PROVISIONS OF SECTION ONE HUNDRED NINETY-EIGHT-B OF THIS ARTICLE
 SHALL STILL APPLY.
   (E)  WHERE  A  FRANCHISOR  OR MANUFACTURER, AS DEFINED BY SECTION FOUR
 HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW, DIRECTLY OR INDIRECTLY
 SUBJECTS ANY DEALER TO ANY FINANCIAL OR  OTHER  PENALTIES  OR  OTHERWISE
 PENALIZES  OR  PREVENTS  A DEALER FROM SELLING OR LEASING ANY USED MOTOR
 VEHICLE UNDER RECALL, INCLUDING WHERE ANY SUCH RESTRICTIONS ARE  IMPOSED
 BY THE MANUFACTURER, EITHER THROUGH THE ISSUANCE OF A "STOP SELL" OR ANY
 OTHER COMMUNICATION, OR FEDERAL, STATE, OR LOCAL LAW OR REGULATION:
   (1)  THE  FRANCHISOR  OR  MANUFACTURER SHALL, WITHIN FIFTEEN DAYS FROM
 NOTICE OF A RECALL, OR UPON NOTIFICATION FROM A DEALER THAT THEY ARE  IN
 POSSESSION  OF  A  VEHICLE  UNDER  SUCH RECALL, WHICH IS COVERED UNDER A
 POLICY OR POLICIES AS DESCRIBED IN  THIS  SUBDIVISION,  PROVIDE  TO  THE
 DEALER A PAYMENT OF THREE AND FORTY-SIX ONE HUNDREDTHS PERCENT IF IN THE
 AREA  OF  THE  STATE  INCLUDED  IN  THE DISTRICT CREATED AND GOVERNED BY
 SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW  AND  TWO
 AND  FORTY-THREE ONE HUNDREDTHS PERCENT FOR ALL OTHER AREAS OF THE STATE
 OF THE VALUE OF A USED  MOTOR  VEHICLE  AS  DETERMINED  BY  THE  AVERAGE
 "TRADE-IN"  VALUE  FOR  A  SIMILAR USED VEHICLE AS INDICATED IN A WIDELY
 DISSEMINATED, PUBLICLY AVAILABLE, INDEPENDENT USED MOTOR  VEHICLE  GUIDE
 FOR  THE YEAR, MAKE, MODEL, AND MILEAGE OF THE USED MOTOR VEHICLE IN THE
 POSSESSION OF THE DEALER FOR EVERY THIRTY DAYS,  OR  PORTION  OF  THIRTY
 DAYS,  THE DEALER IS UNABLE TO SELL, OFFER TO SELL, OR REPAIR SUCH VEHI-
 CLE DUE TO THE INABILITY TO SATISFY ANY RECALL ISSUED FOR  SUCH  VEHICLE
 OR  DUE  TO  COMMUNICATION  RECEIVED FROM THE MANUFACTURER REGARDING THE
 SALE OF SUCH VEHICLE; AND/OR
   (2) THE MANUFACTURER OR FRANCHISOR SHALL BUY FROM THE DEALER,  AT  THE
 REQUEST  OF  THE  DEALER  AND  AT THE PRICE PAID BY THE DEALER, ANY USED
 MOTOR VEHICLE THAT IS IN THE POSSESSION OF THE DEALER IN EXCESS OF THIR-
 TY DAYS THAT THE DEALER IS UNABLE TO SELL, OFFER TO SELL, OR REPAIR  DUE
 TO  THE  POLICY OF THE MANUFACTURER OR TO THE UNAVAILABILITY OF A REPAIR
 OR PARTS, AND WHERE THE DEALER CANNOT SATISFY ANY RECALL ISSUED FOR SUCH
 VEHICLE. THE MANUFACTURER SHALL ALSO PAY ANY TRANSPORTATION COSTS  ASSO-
 CIATED  WITH  THE  BUYING  OF  THE  VEHICLE FROM THE DEALER, HOWEVER ANY
 PAYMENT TO A DEALER UNDER THIS PARAGRAPH MAY BE REDUCED BY THE AMOUNT OF
 ANY PREVIOUS PAYMENT MADE UNDER PARAGRAPH ONE OF THIS SUBDIVISION;

 A. 8268                             3
 
   (3) THE MANUFACTURER OR FRANCHISOR SHALL  PAY  THE  DEALER  THROUGH  A
 CREDIT  TO THE DEALER'S OPEN ACCOUNT, OR BY ANY OTHER METHOD APPROVED BY
 THE DEALER.
   (F)  THE MANUFACTURER OR FRANCHISOR MAY NOT RETALIATE AGAINST A DEALER
 WHO HAS SUBMITTED A CLAIM FOR REIMBURSEMENT UNDER THIS  SECTION  OR  WHO
 WAS OTHERWISE COMPENSATED FOR A VEHICLE SUBJECT TO A RECALL; SUCH RETAL-
 IATION  SHALL  INCLUDE,  BUT  IS  NOT LIMITED TO, REDUCING THE AMOUNT OF
 COMPENSATION OTHERWISE OWED TO A DEALER, WHETHER THROUGH  A  CHARGEBACK,
 REMOVAL  FROM  AN  INCENTIVE  PROGRAM, REDUCING THE AMOUNT OWED UNDER AN
 INCENTIVE PROGRAM, OR ANY OTHER MEANS, IMPOSING ADDITIONAL REQUIREMENTS,
 WITHHOLDING  INVENTORY,  REDUCING  ALLOCATION,  REQUIRING  ANY  FACILITY
 UPGRADE,  OR  OTHERWISE  SURCHARGING OR PENALIZING THE DEALER.  A DEALER
 MAY NOT, HOWEVER, RECEIVE COMPENSATION FOR THE SAME VEHICLE UNDER RECALL
 UNDER THIS SECTION,  AS  WELL  AS  UNDER  ANOTHER  MANUFACTURER  PROGRAM
 DESIGNED  TO  MITIGATE  DEALER  COSTS  FOR THE HOLDING OF VEHICLES UNDER
 RECALL, UNLESS OTHERWISE ENTITLED TO SUCH COMPENSATION.
   (G) THE MANUFACTURER OR FRANCHISOR SHALL PAY FOR ANY REPAIRS PERFORMED
 BY THE DEALER TO REMEDY  ANY  RECALL,  PURSUANT  TO  THE  PROVISIONS  OF
 SECTION  FOUR  HUNDRED  SIXTY-FIVE  OF  THE VEHICLE AND TRAFFIC LAW. ANY
 REPLACEMENT PART PROVIDED FOR A RECALL  REPAIR  SHALL  BE  PAID  AT  THE
 EXISTING  RETAIL  REIMBURSEMENT RATE IN EXISTENCE AT THE TIME THE REPAIR
 IS PERFORMED.
   § 2. This act shall take effect immediately.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8268--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 5, 2017
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
   Committee on Consumer Affairs and Protection  --  recommitted  to  the
   Committee on Consumer Affairs and Protection in accordance with Assem-
   bly  Rule  3,  sec.  2  -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee

 AN ACT to amend the general business law, in relation to safety  recalls
   on used motor vehicles
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 198-d to read as follows:
   § 198-D. USED MOTOR VEHICLES; RECALLS. (A) FOR  THE  PURPOSE  OF  THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (1) "DEALER" SHALL HAVE THE SAME MEANING AS PARAGRAPH A OF SUBDIVISION
 ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW.
   (2) "USED MOTOR VEHICLE" SHALL HAVE THE SAME MEANING AS PARAGRAPH I OF
 SUBDIVISION ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAF-
 FIC LAW.
   (3)  "STOP  DRIVE ORDER" SHALL MEAN A NOTIFICATION ISSUED UNDER 49 USC
 SECTION 30118 WHICH INCLUDES PRECAUTIONARY  ADVICE  TO  STOP  DRIVING  A
 MOTOR  VEHICLE  (INCLUDING  THE  VEHICLE  IDENTIFICATION NUMBER FOR SUCH
 VEHICLE).
   (4) "SAFER CAR WEBSITE" SHALL MEAN ANY WEBSITE, APPLICATION, OR INTER-
 NET ACCESSED PLATFORM OPERATED BY THE NATIONAL  HIGHWAY  TRAFFIC  SAFETY
 ADMINISTRATION, THE UNITED STATES DEPARTMENT OF TRANSPORTATION, OR THEIR
 AGENT  AND/OR SUBCONTRACTOR, WHEREIN A CONSUMER MAY DETERMINE THE STATUS
 OF ALL RECALLS ON ANY NEW AND/OR USED MOTOR VEHICLE.
   (B) IF, PRIOR TO EXECUTING A CONTRACT FOR SALE  OR  LEASE  OF  A  USED
 MOTOR  VEHICLE  AT  RETAIL,  A DEALER DETERMINES PURSUANT TO THE INQUIRY
 REQUIRED BY SUBDIVISION (F) OF THIS SECTION THAT THE USED MOTOR  VEHICLE
 SUBJECT  TO  THE CONTRACT IS UNDER A STOP DRIVE ORDER, SUCH DEALER SHALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11912-03-8

 A. 8268--A                          2
 
 NOT SELL OR LEASE ANY SUCH VEHICLE UNTIL THE DEFECT OR NONCOMPLIANCE  IS
 REMEDIED.
   (C) A DEALER SHALL DISCLOSE IN ANY PRINT AND ONLINE ADVERTISEMENT THAT
 ANY  USED MOTOR VEHICLE BEING ADVERTISED MAY BE SUBJECT TO A RECALL, AND
 THAT A CONSUMER MAY OBTAIN ALL RECALL INFORMATION  FROM  THE  SAFER  CAR
 WEBSITE.  TWO  DAYS  PRIOR  TO THE SUBMISSION OF ANY ADVERTISEMENT FOR A
 USED MOTOR VEHICLE, A DEALER SHALL MAKE AN  INQUIRY  ON  THE  SAFER  CAR
 WEBSITE  FOR  ANY  OPEN  RECALLS. IF ANY OPEN RECALLS ARE LISTED ON THIS
 REPORT, THE DEALER SHALL EITHER CAUSE THE RECALL DEFECT TO  BE  REPAIRED
 BEFORE THE USED VEHICLE IS DELIVERED TO THE CONSUMER, OR CLEARLY DISPLAY
 NOTICE,  IN  SUCH  ADVERTISEMENT, STATING THAT THE PARTICULAR VEHICLE IS
 SUBJECT TO AN OPEN RECALL.
   (D) A DEALER SHALL MAINTAIN A LINK ON ANY WEBSITE OR  ONLINE  PLATFORM
 IT  CONTROLS DIRECTING THAT A CONSUMER MAY OBTAIN ALL RECALL INFORMATION
 FROM THE SAFER CAR WEBSITE.
   (E) A DEALER SHALL PLACE UPON ALL USED VEHICLES  FOR  SALE  A  STICKER
 AND/OR  DECAL  THAT  INCLUDES  INFORMATION THAT WILL ALLOW A CONSUMER TO
 CHECK THE STATUS OF ANY POTENTIAL RECALLS ON SAID  VEHICLE  THROUGH  THE
 SAFER  CAR  WEBSITE, OR SHALL INCLUDE A MEANS OF CHECKING SAID VEHICLE'S
 RECALL STATUS ON THE SAFER CAR WEBSITE BY SCANNING A BAR CODE, QR  CODE,
 OR  VEHICLE  IDENTIFICATION NUMBER, OR SHALL INCLUDE A REPORT, WHICH MAY
 BE A PRINT COPY OF THE RESULTS OF A SEARCH OF  THE  SAFER  CAR  WEBSITE,
 FROM THE SAFER CAR WEBSITE REFLECTING THE VEHICLE'S RECALL STATUS.
   (F)  A  DEALER  SHALL  PERFORM, PRIOR TO, BUT NO EARLIER THAN TWO DAYS
 BEFORE, THE EXECUTION OF THE SALE OR LEASE OF ANY USED VEHICLE, A SEARCH
 USING THE VEHICLE IDENTIFICATION NUMBER OF THE VEHICLE INVOLVED  IN  THE
 TRANSACTION  ON  THE  NATIONAL  HIGHWAY  TRAFFIC SAFETY ADMINISTRATION'S
 SAFER CAR WEBSITE, AND SHALL PRODUCE AND PROVIDE THE  REPORT  FROM  SUCH
 WEBSITE  TO  THE PURCHASER OF ANY MOTOR VEHICLE SAFETY RECALL OR RECALLS
 THAT THE MOTOR VEHICLE IS SUBJECT TO, THAT SUCH RECALLS MAY BE  REPAIRED
 BY  A  MOTOR VEHICLE DEALER APPROVED BY THE MANUFACTURER OF THE VEHICLE,
 AND THAT FURTHER INFORMATION ON THE RECALLS MAY  BE  OBTAINED  FROM  THE
 NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ON ITS SAFER CAR WEBSITE.
 PROVIDING  A  PRINTOUT  OF THE RESULT OF THE SEARCH PROVIDED FOR IN THIS
 SUBDIVISION SHALL BE DEEMED COMPLIANCE WITH THIS REQUIREMENT,  AND  SUCH
 NOTICE  SHALL BE SIGNED BY THE PURCHASER.  ADDITIONALLY, SUCH DEALER WHO
 COMPLIES WITH THIS SUBDIVISION SHALL BE DEEMED TO HAVE COMPLIED WITH ANY
 STATE OR LOCAL LAW, RULE OR  REGULATION  RELATING  TO  DECEPTIVE  TRADE,
 BUSINESS  OR  COMMERCIAL  ACTS OR PRACTICES CONCERNING THE SALE OR LEASE
 OF, OR OFFER TO SELL OR LEASE, ANY USED MOTOR VEHICLE THAT AS  A  RESULT
 OF  A  FEDERAL  SAFETY  DEFECTIVE  OR  NONCOMPLIANT  CONDITION  HAS BEEN
 RECALLED BY THE ORIGINAL EQUIPMENT MANUFACTURER OF SUCH USED MOTOR VEHI-
 CLE OR THE UNITED STATES DEPARTMENT OF TRANSPORTATION, PROVIDED,  HOWEV-
 ER, THE PROVISIONS OF SECTION ONE HUNDRED NINETY-EIGHT-B OF THIS ARTICLE
 SHALL STILL APPLY.
   (G)  WHERE  A  FRANCHISOR  OR MANUFACTURER, AS DEFINED BY SECTION FOUR
 HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW, DIRECTLY OR INDIRECTLY
 SUBJECTS ANY DEALER TO ANY FINANCIAL OR  OTHER  PENALTIES  OR  OTHERWISE
 PENALIZES  OR  PREVENTS  A DEALER FROM SELLING OR LEASING ANY USED MOTOR
 VEHICLE SUBJECT TO RECALL, INCLUDING WHERE  ANY  SUCH  RESTRICTIONS  ARE
 IMPOSED  BY  THE  MANUFACTURER,  EITHER  THROUGH THE ISSUANCE OF A "STOP
 SELL" OR ANY OTHER COMMUNICATION, OR FEDERAL, STATE,  OR  LOCAL  LAW  OR
 REGULATION:
   (1)  THE  FRANCHISOR  OR  MANUFACTURER SHALL, WITHIN FIFTEEN DAYS FROM
 NOTICE OF A RECALL, OR UPON NOTIFICATION FROM A DEALER THAT THEY ARE  IN
 POSSESSION OF A VEHICLE SUBJECT TO SUCH RECALL, WHICH IS COVERED UNDER A

 A. 8268--A                          3
 
 POLICY  OR  POLICIES  AS  DESCRIBED IN THIS SUBDIVISION, PROVIDE TO SAID
 DEALER A PAYMENT OF TWO PERCENT OF THE VALUE OF A USED MOTOR VEHICLE  AS
 DETERMINED BY THE AVERAGE "TRADE-IN" VALUE FOR A SIMILAR USED VEHICLE AS
 INDICATED IN A WIDELY DISSEMINATED, PUBLICLY AVAILABLE, INDEPENDENT USED
 MOTOR  VEHICLE  GUIDE FOR THE YEAR, MAKE, MODEL, AND MILEAGE OF THE USED
 MOTOR VEHICLE IN THE POSSESSION OF THE DEALER FOR EVERY THIRTY DAYS,  OR
 PORTION  OF THIRTY DAYS, THE DEALER IS UNABLE TO SELL, OFFER TO SELL, OR
 REPAIR SUCH VEHICLE DUE TO THE INABILITY TO SATISFY  ANY  RECALL  ISSUED
 FOR  SUCH VEHICLE OR DUE TO COMMUNICATION RECEIVED FROM THE MANUFACTURER
 REGARDING THE SALE OF SUCH VEHICLE; AND
   (2) THE MANUFACTURER OR FRANCHISOR SHALL  PAY  THE  DEALER  THROUGH  A
 CREDIT  TO THE DEALER'S OPEN ACCOUNT, OR BY ANY OTHER METHOD APPROVED BY
 THE DEALER.
   (H) THE MANUFACTURER OR FRANCHISOR MAY NOT RETALIATE AGAINST A  DEALER
 WHO  HAS  SUBMITTED  A CLAIM FOR REIMBURSEMENT UNDER THIS SECTION OR WHO
 WAS OTHERWISE COMPENSATED FOR A VEHICLE SUBJECT TO  A  RECALL.  FOR  THE
 PURPOSES  OF  THIS SUBDIVISION, RETALIATION SHALL INCLUDE, BUT SHALL NOT
 BE LIMITED TO, REDUCING THE AMOUNT OF COMPENSATION OTHERWISE OWED  TO  A
 DEALER, WHETHER THROUGH A CHARGEBACK, REMOVAL FROM AN INCENTIVE PROGRAM,
 REDUCING THE AMOUNT OWED UNDER AN INCENTIVE PROGRAM, OR ANY OTHER MEANS,
 IMPOSING  ADDITIONAL REQUIREMENTS, WITHHOLDING INVENTORY, REDUCING ALLO-
 CATION, REQUIRING ANY FACILITY  UPGRADE,  OR  OTHERWISE  SURCHARGING  OR
 PENALIZING  THE DEALER.  A DEALER MAY NOT, HOWEVER, RECEIVE COMPENSATION
 FOR THE SAME VEHICLE UNDER RECALL UNDER THIS SECTION, AS WELL  AS  UNDER
 ANOTHER  MANUFACTURER  PROGRAM DESIGNED TO MITIGATE DEALER COSTS FOR THE
 HOLDING OF VEHICLES UNDER RECALL,  UNLESS  OTHERWISE  ENTITLED  TO  SUCH
 COMPENSATION.
   (I) THE MANUFACTURER OR FRANCHISOR SHALL PAY FOR ANY REPAIRS PERFORMED
 BY  THE  DEALER  TO  REMEDY  ANY  RECALL,  PURSUANT TO THE PROVISIONS OF
 SECTION FOUR HUNDRED SIXTY-FIVE OF THE  VEHICLE  AND  TRAFFIC  LAW.  ANY
 REPLACEMENT  PART  PROVIDED  FOR  A  RECALL  REPAIR SHALL BE PAID AT THE
 EXISTING RETAIL REIMBURSEMENT RATE IN EXISTENCE AT THE TIME  THE  REPAIR
 IS PERFORMED.
   §  2.  This act shall take effect immediately, provided, however, that
 subdivisions (b) through (f) of section one  hundred  ninety-eight-d  of
 the  general  business  law,  as added by section one of this act, shall
 take effect sixty days after this act shall have become a law.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8268--B
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 5, 2017
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
   Committee on Consumer Affairs and Protection  --  recommitted  to  the
   Committee on Consumer Affairs and Protection in accordance with Assem-
   bly  Rule  3,  sec.  2  -- committee discharged, bill amended, ordered
   reprinted as amended  and  recommitted  to  said  committee  --  again
   reported  from  said  committee  with amendments, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the general business law, in relation to safety  recalls
   on used motor vehicles
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 198-d to read as follows:
   § 198-D. USED MOTOR VEHICLES; RECALLS. (A) FOR  THE  PURPOSE  OF  THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (1) "DEALER" SHALL HAVE THE SAME MEANING AS PARAGRAPH A OF SUBDIVISION
 ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW.
   (2) "USED MOTOR VEHICLE" SHALL HAVE THE SAME MEANING AS PARAGRAPH I OF
 SUBDIVISION ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAF-
 FIC LAW.
   (3)  "STOP  DRIVE ORDER" SHALL MEAN A NOTIFICATION ISSUED UNDER 49 USC
 SECTION 30118 WHICH INCLUDES PRECAUTIONARY  ADVICE  TO  STOP  DRIVING  A
 MOTOR  VEHICLE  (INCLUDING  THE  VEHICLE  IDENTIFICATION NUMBER FOR SUCH
 VEHICLE).
   (4) "SAFER CAR WEBSITE" SHALL MEAN ANY WEBSITE, APPLICATION, OR INTER-
 NET ACCESSED PLATFORM OPERATED BY THE NATIONAL  HIGHWAY  TRAFFIC  SAFETY
 ADMINISTRATION, THE UNITED STATES DEPARTMENT OF TRANSPORTATION, OR THEIR
 AGENT  AND/OR SUBCONTRACTOR, WHEREIN A CONSUMER MAY DETERMINE THE STATUS
 OF ALL RECALLS ON ANY NEW AND/OR USED MOTOR VEHICLE.
   (B) IF, PRIOR TO EXECUTING A CONTRACT FOR SALE  OR  LEASE  OF  A  USED
 MOTOR  VEHICLE  AT  RETAIL,  A DEALER DETERMINES PURSUANT TO THE INQUIRY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11912-06-8

 A. 8268--B                          2
 
 REQUIRED BY SUBDIVISION (F) OF THIS SECTION THAT THE USED MOTOR  VEHICLE
 SUBJECT  TO  THE CONTRACT IS UNDER A STOP DRIVE ORDER, SUCH DEALER SHALL
 NOT SELL OR LEASE ANY SUCH VEHICLE UNTIL THE DEFECT OR NONCOMPLIANCE  IS
 REMEDIED.
   (C) A DEALER SHALL DISCLOSE IN ANY PRINT AND ONLINE ADVERTISEMENT THAT
 ANY  USED MOTOR VEHICLE BEING ADVERTISED MAY BE SUBJECT TO A RECALL, AND
 THAT A CONSUMER MAY OBTAIN ALL RECALL INFORMATION  FROM  THE  SAFER  CAR
 WEBSITE.  TWO  DAYS  PRIOR  TO THE SUBMISSION OF ANY ADVERTISEMENT FOR A
 USED MOTOR VEHICLE, A DEALER SHALL MAKE AN  INQUIRY  ON  THE  SAFER  CAR
 WEBSITE  FOR  ANY  OPEN  RECALLS. IF ANY OPEN RECALLS ARE LISTED ON THIS
 REPORT, THE DEALER SHALL EITHER CAUSE THE RECALL DEFECT TO  BE  REPAIRED
 BEFORE THE USED VEHICLE IS DELIVERED TO THE CONSUMER, OR CLEARLY DISPLAY
 NOTICE,  IN  SUCH  ADVERTISEMENT, STATING THAT THE PARTICULAR VEHICLE IS
 SUBJECT TO AN OPEN RECALL.
   (D) A DEALER SHALL MAINTAIN A LINK ON ANY WEBSITE OR  ONLINE  PLATFORM
 IT  CONTROLS DIRECTING THAT A CONSUMER MAY OBTAIN ALL RECALL INFORMATION
 FROM THE SAFER CAR WEBSITE.
   (E) A DEALER SHALL PLACE UPON ALL USED VEHICLES  FOR  SALE  A  STICKER
 AND/OR  DECAL  THAT  INCLUDES  INFORMATION THAT WILL ALLOW A CONSUMER TO
 CHECK THE STATUS OF ANY POTENTIAL RECALLS ON SAID  VEHICLE  THROUGH  THE
 SAFER  CAR  WEBSITE, OR SHALL INCLUDE A MEANS OF CHECKING SAID VEHICLE'S
 RECALL STATUS ON THE SAFER CAR WEBSITE BY SCANNING A BAR CODE, QR  CODE,
 OR  VEHICLE  IDENTIFICATION NUMBER, OR SHALL INCLUDE A REPORT, WHICH MAY
 BE A PRINT COPY OF THE RESULTS OF A SEARCH OF  THE  SAFER  CAR  WEBSITE,
 FROM THE SAFER CAR WEBSITE REFLECTING THE VEHICLE'S RECALL STATUS.
   (F)  A  DEALER  SHALL  PERFORM, PRIOR TO, BUT NO EARLIER THAN TWO DAYS
 BEFORE, THE EXECUTION OF THE SALE OR LEASE OF ANY USED VEHICLE, A SEARCH
 USING THE VEHICLE IDENTIFICATION NUMBER OF THE VEHICLE INVOLVED  IN  THE
 TRANSACTION  ON  THE  NATIONAL  HIGHWAY  TRAFFIC SAFETY ADMINISTRATION'S
 SAFER CAR WEBSITE, AND SHALL PRODUCE AND PROVIDE THE  REPORT  FROM  SUCH
 WEBSITE  TO  THE PURCHASER OF ANY MOTOR VEHICLE SAFETY RECALL OR RECALLS
 THAT THE MOTOR VEHICLE IS SUBJECT TO, THAT SUCH RECALLS MAY BE  REPAIRED
 BY  A  MOTOR VEHICLE DEALER APPROVED BY THE MANUFACTURER OF THE VEHICLE,
 AND THAT FURTHER INFORMATION ON THE RECALLS MAY  BE  OBTAINED  FROM  THE
 NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ON ITS SAFER CAR WEBSITE.
 PROVIDING  A  PRINTOUT  OF THE RESULT OF THE SEARCH PROVIDED FOR IN THIS
 SUBDIVISION SHALL BE DEEMED COMPLIANCE WITH THIS REQUIREMENT,  AND  SUCH
 NOTICE  SHALL BE SIGNED BY THE PURCHASER.  ADDITIONALLY, SUCH DEALER WHO
 COMPLIES WITH THIS SUBDIVISION SHALL BE DEEMED TO HAVE COMPLIED WITH ANY
 STATE OR LOCAL LAW, RULE OR  REGULATION  RELATING  TO  DECEPTIVE  TRADE,
 BUSINESS  OR  COMMERCIAL  ACTS OR PRACTICES CONCERNING THE SALE OR LEASE
 OF, OR OFFER TO SELL OR LEASE, ANY USED MOTOR VEHICLE THAT AS  A  RESULT
 OF  A  FEDERAL  SAFETY  DEFECTIVE  OR  NONCOMPLIANT  CONDITION  HAS BEEN
 RECALLED BY THE ORIGINAL EQUIPMENT MANUFACTURER OF SUCH USED MOTOR VEHI-
 CLE OR THE UNITED STATES DEPARTMENT OF TRANSPORTATION, PROVIDED,  HOWEV-
 ER, THE PROVISIONS OF SECTION ONE HUNDRED NINETY-EIGHT-B OF THIS ARTICLE
 SHALL STILL APPLY.
   (G)  WHERE  A  FRANCHISOR  OR MANUFACTURER, AS DEFINED BY SECTION FOUR
 HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW, DIRECTLY OR INDIRECTLY
 SUBJECTS ANY DEALER TO ANY FINANCIAL OR  OTHER  PENALTIES  OR  OTHERWISE
 PENALIZES  OR  PREVENTS  A DEALER FROM SELLING OR LEASING ANY USED MOTOR
 VEHICLE SUBJECT TO RECALL, INCLUDING WHERE  ANY  SUCH  RESTRICTIONS  ARE
 IMPOSED  BY  THE  MANUFACTURER,  EITHER  THROUGH THE ISSUANCE OF A "STOP
 SELL" OR ANY OTHER COMMUNICATION, OR FEDERAL, STATE,  OR  LOCAL  LAW  OR
 REGULATION:

 A. 8268--B                          3
 
   (1)  THE  FRANCHISOR  OR  MANUFACTURER SHALL, WITHIN FIFTEEN DAYS FROM
 NOTICE OF A RECALL, OR UPON NOTIFICATION FROM A DEALER THAT THEY ARE  IN
 POSSESSION OF A VEHICLE SUBJECT TO SUCH RECALL, WHICH IS COVERED UNDER A
 POLICY  OR  POLICIES  AS  DESCRIBED IN THIS SUBDIVISION, PROVIDE TO SAID
 DEALER A PAYMENT OF ONE AND SEVENTY-FIVE HUNDREDTHS PERCENT OF THE VALUE
 OF  A  USED  MOTOR VEHICLE AS DETERMINED BY THE AVERAGE "TRADE-IN" VALUE
 FOR A SIMILAR USED  VEHICLE  AS  INDICATED  IN  A  WIDELY  DISSEMINATED,
 PUBLICLY  AVAILABLE,  INDEPENDENT USED MOTOR VEHICLE GUIDE FOR THE YEAR,
 MAKE, MODEL, AND MILEAGE OF THE USED MOTOR VEHICLE IN THE POSSESSION  OF
 THE  DEALER FOR EVERY THIRTY DAYS, OR PORTION OF THIRTY DAYS, THE DEALER
 IS UNABLE TO SELL, OFFER TO SELL, OR REPAIR  SUCH  VEHICLE  DUE  TO  THE
 INABILITY TO SATISFY ANY RECALL ISSUED FOR SUCH VEHICLE OR DUE TO COMMU-
 NICATION RECEIVED FROM THE MANUFACTURER REGARDING THE SALE OF SUCH VEHI-
 CLE; AND
   (2)  THE  MANUFACTURER  OR  FRANCHISOR  SHALL PAY THE DEALER THROUGH A
 CREDIT TO THE DEALER'S OPEN ACCOUNT, OR BY ANY OTHER METHOD APPROVED  BY
 THE DEALER.
   (H)  THE MANUFACTURER OR FRANCHISOR MAY NOT RETALIATE AGAINST A DEALER
 WHO HAS SUBMITTED A CLAIM FOR REIMBURSEMENT UNDER THIS  SECTION  OR  WHO
 WAS  OTHERWISE  COMPENSATED  FOR  A VEHICLE SUBJECT TO A RECALL. FOR THE
 PURPOSES OF THIS SUBDIVISION, RETALIATION SHALL INCLUDE, BUT  SHALL  NOT
 BE  LIMITED  TO, REDUCING THE AMOUNT OF COMPENSATION OTHERWISE OWED TO A
 DEALER, WHETHER THROUGH A CHARGEBACK, REMOVAL FROM AN INCENTIVE PROGRAM,
 REDUCING THE AMOUNT OWED UNDER AN INCENTIVE PROGRAM, OR ANY OTHER MEANS,
 IMPOSING ADDITIONAL REQUIREMENTS, WITHHOLDING INVENTORY, REDUCING  ALLO-
 CATION,  REQUIRING  ANY  FACILITY  UPGRADE,  OR OTHERWISE SURCHARGING OR
 PENALIZING THE DEALER.  A DEALER MAY NOT, HOWEVER, RECEIVE  COMPENSATION
 FOR  THE  SAME VEHICLE UNDER RECALL UNDER THIS SECTION, AS WELL AS UNDER
 ANOTHER MANUFACTURER PROGRAM DESIGNED TO MITIGATE DEALER COSTS  FOR  THE
 HOLDING  OF  VEHICLES  UNDER  RECALL,  UNLESS OTHERWISE ENTITLED TO SUCH
 COMPENSATION.
   (I) THE MANUFACTURER OR FRANCHISOR SHALL PAY FOR ANY REPAIRS PERFORMED
 BY THE DEALER TO REMEDY  ANY  RECALL,  PURSUANT  TO  THE  PROVISIONS  OF
 SECTION  FOUR  HUNDRED  SIXTY-FIVE  OF  THE VEHICLE AND TRAFFIC LAW. ANY
 REPLACEMENT PART PROVIDED FOR A RECALL  REPAIR  SHALL  BE  PAID  AT  THE
 EXISTING  RETAIL  REIMBURSEMENT RATE IN EXISTENCE AT THE TIME THE REPAIR
 IS PERFORMED.
   § 2. This act shall take effect immediately, provided,  however,  that
 subdivisions  (b)  through  (f) of section one hundred ninety-eight-d of
 the general business law, as added by section one  of  this  act,  shall
 take effect sixty days after this act shall have become a law.